It’s difficult finding the right loan company if you need a payday loan or short-term loan to help you with an emergency situation like your car breaking down or unexpected dental or eye work. It can be ever harder finding a reliable loan broker online.
In this article, BestUnsecuredLoans looks at what a loan broker does, how they make their money, how to check if one is reliable, and how to get a short-term loan or a payday loan through a broker.
What is a loan broker?
In general, a broker is someone who brings together someone who wants to buy something with someone who wants to sell something. Think about eBay, for example – they’re a broker.
They let sellers of goods and services advertise on their platform and, if they find a buyer, they take a fee from the seller because they brought the buyer and seller together. It’s the same principle with travel agents and even Just Eat who take a commission every time you order a takeaway from one of their restaurants.
A loan broker works along the same lines but, unlike eBay, a travel agent, or Just Eat, loan brokers are highly regulated and they have to follow a code of practice to make sure that borrowers like you are protected.
How do loan brokers make money?
With BestUnsecuredLoans, we make money every time we pair together the right borrower with the right lender. If a borrower then takes out a loan that we recommend, we get a “thank you” payment from the lender for introducing you to them. It’s that simple.
Does a reliable loan broker charge upfront fees?
You never pay a penny for our service. You should never work with a broker who will charge you a fee for finding the right loan for you – after all, you wouldn’t pay JustEat a separate fee for finding that perfect pizza.
It’s our job to find you a loan that’s attractive enough that you want to take out. Why should you pay us any money if we can’t find you a loan that you’re happy to take out?
How can I check to see whether an online loan broker is reliable?
All reputable and legal online loan brokers must be licenced by the Financial Conduct Authority (FCA). The FCA makes sure that all online lenders and online loan brokers behave properly and that they put the interests of their borrowers first.
If an online loan broker is not registered and licenced by the FCA and you’re thinking about working with them, please don’t. You’re at high risk of being taken advantage of by a loan shark.
Can I get a short term loan with bad credit?
Yes. There are over 100 different lenders in the UK happy to offer payday loans and short-term loans to borrowers whose credit histories are less than perfect.
You can normally borrow between £50 and £2,500. With a payday loan, you make one repayment within 30 days of taking the loan out – you pay back the amount you borrowed and the interest all in one go. With a short-term loan, you can borrow money over the course of up to a year and the longer you borrow for, the lower the amount you repay every month (although the overall interest on your loan will be greater).
You need to be 18 years or older, have a bank account with a debit card, and have a mobile phone number and email address.
Can I get a short term loan from a reliable online loan broker with no credit?
Yes. BestUnsecuredLoans is a reliable online broker and we’re licensed and regulated by the Financial Conduct Authority.
We care about our borrowers. We see our job first and foremost to help borrowers out when they have an emergency bill they haven’t budgeted for that they can’t meet from what’s in their bank current account or savings account at the time.
What is responsible lending?
BestUnsecuredLoans is a responsible broker and all of the finance companies we have on our panel are responsible lenders. We take every precaution to make sure we don’t say “yes” to your application if we don’t think you can meet the repayments out of the money you have spare in your bank account at the end of the month.
We believe a loan should be there to help borrowers out when there’s a financial emergency. Our lenders and we are not here to cause you stress and anxiety by giving you a loan you can’t afford to pay back.
How do BestUnsecuredLoans help their clients?
As we mentioned earlier, there are over 100 lenders who work with borrowers whose credit histories are less than perfect. These lenders are more interested in who you are now and not any problems you might have had a few years ago.
Every lender has a particular type of borrower they like to work with. When we start working with a finance company, what they want us to do is to only bring them the type of borrowers they are happy to lend to. This saves them time and money. So that we can do that, they give us a long list of requirements about their “ideal” borrower.
When you fill in the form on our website, we take all the details you’ve given us and then we match it to the lenders you’ve got the very best chance of getting a loan out with. Sometimes, it might be two or three lenders. Other times, it might be ten or more. We then get the first offers back from each lender and that means that we have a really strong idea about the companies who will make you a final offer.
We then send those companies a copy of your credit report – that’s part of being a responsible broker. Once they’ve had a look through your file, each lender will then either give you a final offer or withdraw their offer.
All of this takes place in just a few seconds thanks to our clever computer system. At the end of the process, we then present you with the best deal at the cheapest rates we’ve found.
It’s then up to you whether you want to take out the loan. We never charge you for our service and you’ll never pay more going through us than you will by going direct to the lender yourself.
How long will it take before the money arrives in my bank account?
Once you’ve signed the online paperwork, you’ll normally receive your money within 2 hours. With some banks not on the Faster Payment system, it may take longer.
Click here to start your application.